Have you heard of Dan Yongping? He is a legendary figure in China's investment world and one of the few Chinese investors who has dined with Warren Buffett. His investment strategies are truly instructive, so today I want to share some of his ways of thinking.

Dan Yongping's background is truly dramatic. At age 28, he took over a small factory facing management crisis and grew it to an annual output value of 10 billion yuan within just a few years. Later, he founded BBK Electronics, which won the "Top Brand" award in CCTV advertising for two consecutive years. Eventually, he split the company, creating the two major smartphone brands OPPO and vivo. He retired from business at age 40, moved to the United States, and shifted his focus to investing. His current net worth is said to exceed $30 billion.

In 2006, Dan Yongping paid $620k for a dinner with Warren Buffett, during which he recommended Apple to Buffett. Buffett subsequently bought大量 Apple shares, and Dan Yongping was deeply influenced by value investing principles.

Looking at his investment successes, some interesting patterns emerge. In 2001, when NetEase's stock plunged to $0.8 due to litigation issues, most investors fled, but Dan Yongping invested $2 million. Later, this investment grew to over $100 million in value, reportedly yielding a return of 68 times.

His investment in Apple is also impressive. In 2011, when Apple's market cap was still under $300 billion, he bought大量 Apple shares and held them long-term. As of late 2024, the Apple holdings in his US stock fund (H&H) reached $620k, accounting for 70.50% of the total. Holding for 14 years, he achieved multiple times returns.

His approach to investing in Kweichow Moutai is also unique. He calls it a "long-term bond," considering it the safest place to park surplus funds. He invested almost all his yuan accounts in Moutai, predicting that in 10 years, its value would surpass bank deposits. He has not sold a single share for over a decade.

Recently, his investment activity has been active. In August 2024, when Pinduoduo's stock price plummeted, Dan Yongping actively built positions. In Q3, he added 3.8 million shares, making it the fund's fifth-largest holding. Regarding Tencent, he repeatedly bought during its downturn from 2022 to 2023, and in November 2023, he announced purchasing 200k shares for about $8.2 million.

From these activities, ten investment principles of Dan Yongping can be summarized.

First, "Fish where there are fish." This is Charlie Munger's phrase, meaning choosing markets where profits are possible is the most important. While China's A-shares have hovered around 3,000 points for over a decade, US stocks have been rising for 20 years. Choosing the right direction is far more important than how much effort you put in.

Next, "Choose stocks in one year, hold for ten." Buffett says, "If you can't hold a stock for even a second, you shouldn't hold it for ten years." Dan Yongping practices this, evidenced by his 14-year holding of Apple. Buying stocks that can sleep well at night is crucial.

The principle "Buy a stock as you buy a company" is also vital. If the product is good, the business model is excellent, and the founder has vision, there's no need to fear temporary declines in stock price. When Tencent or Tesla crashed, their intrinsic value remained unchanged.

Investing requires "conviction." Believe wholeheartedly and be unaffected by external influences. Dan Yongping has two accounts: one for value investing with long-term holdings, and another for speculation. He says profits from the speculative account were minimal.

"There's no shortcut to investing" is another key point. If you think speculation is a shortcut, you'll keep searching forever. Speculation is essentially like flipping a coin, with a 50/50 chance of winning.

Reducing the number of decisions is also important. He believes, "If you make 20 decisions a year, you'll definitely make mistakes." Focusing on high-quality judgments is essential. He considers 20 investment decisions in a lifetime sufficient.

If you're not making profits, "review your strategy." Improving speculative techniques to truly make big money is a critical question.

"Buy where no one is paying attention, sell when everyone is excited." When asked why he boldly bought NetEase, Dan Yongping replied, "Why would I need courage when something worth 10 yuan is being sold for 1 yuan?" At that time, NetEase's cash per share was 4 yuan, yet its stock price had fallen to 1 yuan.

It's also important to recognize that A-shares are "not gambling." Profiting from A-shares is the work of value investors, not speculators.

Finally, Dan Yongping says, "Believe in fate." Human nature cannot be changed. If you're a speculator, you'll remain a speculator; if you agree with value investing, you'll become a value investor. The reason he had dinner with Buffett was because they were both practitioners of value investing.

Reading these principles, I feel the essence of investing becomes clearer. Dan Yongping's success is not by chance but the result of a consistent philosophy.